| Hello John, As you probably know, important parts of President Trump’s historic Tax Cuts and Jobs Act will expire at the end of the year unless Congress renews them. The TCJA boosted the economy pre-Covid, with 5 million jobs created and median incomes up 8.5%. In the long term, investment in the United States is expected to rise by 7.4% as a direct result of the Trump tax cuts. Renewing the Trump tax cuts is a crucial job facing the new president and Congress. Why? Because we can’t begin to get this economy moving if Americans are hit with a $4 trillion tax hike (over 10 years). Imagine paying higher taxes on top of Joe Biden’s higher prices — no thanks. Tax policy can be complex, but it has huge implications for your finances. Here are the important tax provisions that will expire without congressional action and what’s at stake for you if Congress allows that to happen: - Individual income tax rates: The TCJA lowered income tax rates across all income levels, giving households more disposable income to save, invest, or spend and helping mom-and-pop businesses grow. Letting the rates go back up would mean less money in our paychecks and higher prices at the store — and we don’t need either.
- Standard deduction: To reduce taxes and simplify the tax code, the TCJA increased the standard deduction and eliminated personal exemptions. This change was especially beneficial to low- and middle-income individuals.
- State and local tax deduction: The TCJA limited to $10,000 the amount that could be deducted for state and local taxes. If this provision expires, all state and local property taxes and income or sales taxes will be deductible, primarily benefitting high-income taxpayers in just four states — California, Illinois, New Jersey, and New York — and making it easier for politicians in blue states to maintain their tax-and-spend ways.
- Small business rates: Mom-and-pop businesses are usually organized so that the owners report their business income on their personal tax returns and pay taxes based on individual tax brackets. Letting the Trump tax cuts expire would raise individual tax rates, increasing taxes on small business owners and leaving them with less to reinvest in their businesses or hire more workers.
- Alternative minimum tax: The TCJA increased the AMT exemption amounts and raised the income levels at which the exemptions phase out, resulting in fewer taxpayers liable for the AMT. If this provision of the TCJA expires, the 2026 AMT exemption for married couples filing jointly will be about $110,075, compared to about $140,300 if the provision is extended.
- Death taxes: The TCJA doubled the estate tax exemption. If this provision expires, the exemption will go down to about $14.3 million for married couples, compared to $28.6 million now. Americans spend a lifetime working to leave something for their families only to see heirs sell it all just to pay Uncle Sam. That’s just wrong.
The TCJA delivered lower taxes for hardworking Americans and supported economic growth. But these benefits are under threat. Now you know what’s at stake in the fight to keep the Trump tax cuts. You’re going to hear a lot from the left about “tax cuts for the rich” and “paying their fair share” and a lot of other nonsense. The truth? The TCJA has helped everyday Americans keep more of their earnings and pursue their dreams. ✍️ Can you take one minute to sign our letter to tell your lawmakers to keep taxes low? It’s your money. You earned it. And you need it to help chase your American Dream. |
